Chapter 20 Economic Growth

*Ch20 Economic Growth*

*Multiple Choice Questions*

*1. *During the last two centuries, the average rate of growth of GDP per capita in the leading industrialized countries has averaged about _________ per year.

A. 2%
B. 12%
C. 22%
D. 32%

Answer: A Reference:

Explanation:

Type: Multiple Choice

*2. *_____________________ is a term which refers to the widespread use of power-driven machinery and the economic and social changes that resulted in the first half of the 1800s.

A. GDP per capita
B. The Industrial Revolution
C. The living standard
D. Investment and inventions

Answer: B Reference:

Explanation:

Type: Multiple Choice

*3. *To achieve a high standard of living, a nation should:

A. increase the tax deduction for child dependents.
B. promote economic growth.
C. use less capital and more labor in the production process.
D. increase welfare payments to the poor.

Answer: B Reference:

Explanation:

Type: Multiple Choice

*4. *In the long run, the most important source of increase in a nation’s standard of living is a:

A. zero rate of population growth
B. high rate of economic growth.
C. high rate of consumption.
D. high rate of labor force growth.

Answer: B Reference:

Explanation:

Type: Multiple Choice

*5. *In macroeconomics, the connection from inputs to outputs for the entire economy is called _______________.

A. a production function
B. an aggregate production function
C. human capital
D. physical capital

Answer: B Reference:

Explanation:

Type: Multiple Choice

*6. *The value of what is produced per worker, or per hour worked, is called ____________.

A. economic growth
B. human capital
C. productivity
D. GDP per capita

Answer: C Reference:

Explanation:

Type: Multiple Choice

*7. *When society has a higher level of capital per person, it is called ______________.

A. physical capital
B. human capital
C. capital deepening
D. technological gains

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